10-Q 1 eqbk-10q_20190930.htm 10-Q eqbk-10q_20190930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File Number 001-37624

 

EQUITY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

 

 

Kansas

 

72-1532188

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

7701 East Kellogg Drive, Suite 300

Wichita, KS

 

 

67207

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: 316.612.6000

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Class A, Common Stock, par value $0.01 per share

Trading Symbol

EQBK

Name of each exchange on which registered

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

 

As of October 31, 2019, the registrant had 15,442,584 shares of common stock, $0.01 par value per share, outstanding.

 

 


TABLE OF CONTENTS

 

Part I

Financial Information

5

Item 1.

Financial Statements

5

 

Consolidated Balance Sheets

5

 

Consolidated Statements of Operations

6

 

Consolidated Statements of Comprehensive Income (Loss)

7

 

Consolidated Statements of Stockholders’ Equity

8

 

Consolidated Statements of Cash Flows

10

 

Condensed Notes to Interim Consolidated Financial Statements

12

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

41

 

Overview

41

 

Critical Accounting Policies

43

 

Results of Operations

45

 

Financial Condition

55

 

Liquidity and Capital Resources

67

 

Non-GAAP Financial Measures

69

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

71

Item 4.

Controls and Procedures

73

Part II

Other Information

75

Item 1.

Legal Proceedings

75

Item 1A.

Risk Factors

75

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

75

Item 3.

Defaults Upon Senior Securities

75

Item 4.

Mine Safety Disclosures

75

Item 5.

Other Information

75

Item 6.

Exhibits

75

 

Important Notice about Information in this Quarterly Report

Unless we state otherwise or the context otherwise requires, references in this Quarterly Report to “we,” “our,” “us,” “the Company” and “Equity” refer to Equity Bancshares, Inc. and its consolidated subsidiaries, including Equity Bank, which we sometimes refer to as “Equity Bank,” “the Bank” or “our Bank.”

The information contained in this Quarterly Report is accurate only as of the date of this Quarterly Report on Form 10-Q and as of the dates specified herein.

2


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance.  These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature.  These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control.  Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict.  Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Item 1A - Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 20, 2019, and in Item 1A – Risk Factors of this Quarterly Report.

There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:

 

an economic downturn, especially one affecting our core market areas;

 

the occurrence of various events that negatively impact the real estate market, since a significant portion of our loan portfolio is secured by real estate;

 

difficult or unfavorable conditions in the market for financial products and services generally;

 

interest rate fluctuations, which could have an adverse effect on our profitability;

 

external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve”), inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition;

 

continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are;

 

costs arising from the environmental risks associated with making loans secured by real estate;

 

losses resulting from a decline in the credit quality of the assets that we hold;

 

the adoption of ASU 2016-13, Financial Instruments – Credit Losses, and its impact on our allowance for loan losses and capital;

 

the effects of new federal tax laws, or changes to existing federal tax laws;

 

inadequacies in our allowance for loan losses, which could require us to take a charge to earnings and thereby adversely affect our financial condition;

 

differences in our qualitative factors used in our calculation of the allowance for loan losses from actual results;

 

inaccuracies or changes in the appraised value of real estate securing the loans that we originate, which could lead to losses if the real estate collateral is later foreclosed upon and sold at a price lower than the appraised value;

 

the costs of integrating the businesses we acquire, which may be greater than expected;

 

challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services;

 

a lack of liquidity resulting from decreased loan repayment rates, lower deposit balances, or other factors;

 

restraints on the ability of Equity Bank to pay dividends to us, which could limit our liquidity;

 

the loss of our largest loan and depositor relationships;

 

limitations on our ability to lend and to mitigate the risks associated with our lending activities as a result of our size and capital position;

3


 

additional regulatory requirements and restrictions on our business, which could impose additional costs on us;

 

increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all;

 

a failure in the internal controls we have implemented to address the risks inherent to the business of banking;

 

inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance;

 

the departure of key members of our management personnel or our inability to hire qualified management personnel;

 

disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems;

 

unauthorized access to nonpublic personal information of our customers, which could expose us to litigation or reputational harm;

 

disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions;

 

required implementation of new accounting standards that significantly change certain of our existing recognition practices;

 

the occurrence of adverse weather or man-made events, which could negatively affect our core markets or disrupt our operations;

 

an increase in FDIC deposit insurance assessments, which could adversely affect our earnings;

 

the impact of the transition from LIBOR and our ability to adequately manage such transition;

 

an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies;

 

our ability to remediate, on a timely basis, our material weakness in our control over financial reporting, relating to the reconciliation process, for a portion of our corporate accounts to our general ledger, and

 

other factors that are discussed in “Item 1A - Risk Factors.”

The foregoing factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in this Quarterly Report.  If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate.  Accordingly, you should not place undue reliance on any such forward-looking statements.  Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.  New risks and uncertainties arise from time to time, and it is not possible for us to predict those events or how they may affect us.  In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.  All forward-looking statements, expressed or implied, included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by this cautionary statement.  This cautionary statement should also be considered in connection with any subsequent written or verbal forward-looking statements that we or persons acting on our behalf may issue.

 

 

4


PART I

 

 

Item 1: Financial Statements

EQUITY BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

September 30, 2019 and December 31, 2018

(Dollar amounts in thousands)

 

 

 

(Unaudited)

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

167,895

 

 

$

192,735

 

Federal funds sold

 

 

158

 

 

 

83

 

Cash and cash equivalents

 

 

168,053

 

 

 

192,818

 

Interest-bearing time deposits in other banks

 

 

3,497

 

 

 

4,991

 

Available-for-sale securities

 

 

152,680

 

 

 

168,875

 

Held-to-maturity securities, fair value of $778,966 and $739,989

 

 

764,163

 

 

 

748,356

 

Loans held for sale

 

 

8,784

 

 

 

2,972

 

Loans, net of allowance for loan losses of $17,875 and $11,454

 

 

2,583,049

 

 

 

2,563,954

 

Other real estate owned, net

 

 

5,944

 

 

 

6,372

 

Premises and equipment, net

 

 

84,481

 

 

 

80,442

 

Bank-owned life insurance

 

 

74,599

 

 

 

73,105

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

31,710

 

 

 

29,214

 

Interest receivable

 

 

16,994

 

 

 

17,372

 

Goodwill

 

 

136,432

 

 

 

131,712

 

Core deposit intangibles, net

 

 

20,727

 

 

 

21,725

 

Other

 

 

23,550

 

 

 

19,808

 

Total assets

 

$

4,074,663

 

 

$

4,061,716

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

Demand

 

$

488,214

 

 

$

503,831

 

Total non-interest-bearing deposits

 

 

488,214

 

 

 

503,831

 

Savings, NOW, and money market

 

 

1,689,606

 

 

 

1,611,710

 

Time

 

 

929,109

 

 

 

1,007,906

 

Total interest-bearing deposits

 

 

2,618,715

 

 

 

2,619,616

 

Total deposits

 

 

3,106,929

 

 

 

3,123,447

 

Federal funds purchased and retail repurchase agreements

 

 

40,652

 

 

 

50,068

 

Federal Home Loan Bank advances

 

 

410,093

 

 

 

384,898

 

Bank stock loan

 

 

14,770

 

 

 

15,450

 

Subordinated debentures

 

 

14,485

 

 

 

14,260

 

Contractual obligations

 

 

3,744

 

 

 

3,965

 

Interest payable and other liabilities

 

 

16,940

 

 

 

13,687

 

Total liabilities

 

 

3,607,613

 

 

 

3,605,775

 

Commitments and contingent liabilities, see Notes 11 and 12

 

 

 

 

 

 

 

 

Stockholders’ equity, see Note 7

 

 

 

 

 

 

 

 

Common stock

 

 

174

 

 

 

173

 

Additional paid-in capital

 

 

382,155

 

 

 

379,085

 

Retained earnings

 

 

115,743

 

 

 

101,326

 

Accumulated other comprehensive loss

 

 

(423

)

 

 

(4,867

)

Employee stock loans

 

 

(77

)

 

 

(121

)

Treasury stock

 

 

(30,522

)

 

 

(19,655

)

Total stockholders’ equity

 

 

467,050

 

 

 

455,941

 

Total liabilities and stockholders’ equity

 

$

4,074,663

 

 

$

4,061,716

 

See accompanying condensed notes to interim consolidated financial statements.

5


EQUITY BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and Nine Months ended September 30, 2019 and 2018

(Dollar amounts in thousands, except per share data)

 

 

(Unaudited)

Three Months Ended

September 30,

 

 

(Unaudited)

Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

38,051

 

 

$

36,335

 

 

$

112,611

 

 

$

98,484

 

Securities, taxable

 

 

4,673

 

 

 

4,836

 

 

 

14,724

 

 

 

12,671

 

Securities, nontaxable

 

 

1,045

 

 

 

1,097

 

 

 

3,143

 

 

 

3,001

 

Federal funds sold and other

 

 

780

 

 

 

754

 

 

 

2,037

 

 

 

1,820

 

Total interest and dividend income

 

 

44,549

 

 

 

43,022

 

 

 

132,515

 

 

 

115,976

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

10,507

 

 

 

6,510

 

 

 

32,381

 

 

 

16,566

 

Federal funds purchased and retail repurchase agreements

 

 

50

 

 

 

30

 

 

 

116

 

 

 

77

 

Federal Home Loan Bank advances

 

 

1,957

 

 

 

3,155

 

 

 

5,103

 

 

 

6,548

 

Bank stock loan

 

 

198

 

 

 

265

 

 

 

507

 

 

 

448

 

Subordinated debentures

 

 

311

 

 

 

307

 

 

 

955

 

 

 

875

 

Total interest expense

 

 

13,023

 

 

 

10,267

 

 

 

39,062

 

 

 

24,514

 

Net interest income

 

 

31,526

 

 

 

32,755

 

 

 

93,453

 

 

 

91,462

 

Provision for loan losses

 

 

679

 

 

 

1,291

 

 

 

17,299

 

 

 

3,211

 

Net interest income after provision for loan losses

 

 

30,847

 

 

 

31,464

 

 

 

76,154

 

 

 

88,251

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,268

 

 

 

1,912

 

 

 

6,431

 

 

 

5,221

 

Debit card income

 

 

2,205

 

 

 

1,667

 

 

 

6,129

 

 

 

4,442

 

Mortgage banking

 

 

820

 

 

 

392

 

 

 

1,699

 

 

 

1,017

 

Increase in value of bank-owned life insurance

 

 

507

 

 

 

521

 

 

 

1,494

 

 

 

1,681

 

Net gain (loss) from securities transactions

 

 

4

 

 

 

(4

)

 

 

17

 

 

 

(14

)

Other

 

 

768

 

 

 

945

 

 

 

2,577

 

 

 

1,929

 

Total non-interest income

 

 

6,572

 

 

 

5,433

 

 

 

18,347

 

 

 

14,276

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

13,039

 

 

 

12,361

 

 

 

40,204

 

 

 

34,881

 

Net occupancy and equipment

 

 

2,177

 

 

 

2,125

 

 

 

6,332

 

 

 

5,938

 

Data processing

 

 

2,673

 

 

 

2,195

 

 

 

7,436

 

 

 

5,837

 

Professional fees

 

 

991

 

 

 

686

 

 

 

3,375

 

 

 

2,245

 

Advertising and business development

 

 

806

 

 

 

802

 

 

 

2,174

 

 

 

2,086

 

Telecommunications

 

 

523

 

 

 

451

 

 

 

1,593

 

 

 

1,252

 

FDIC insurance

 

 

111

 

 

 

457

 

 

 

1,119

 

 

 

1,211

 

Courier and postage

 

 

352

 

 

 

321

 

 

 

1,020

 

 

 

879

 

Free nationwide ATM cost

 

 

459

 

 

 

364

 

 

 

1,240

 

 

 

986

 

Amortization of core deposit intangibles

 

 

784

 

 

 

694

 

 

 

2,348

 

 

 

1,703

 

Loan expense

 

 

165

 

 

 

319

 

 

 

608

 

 

 

810

 

Other real estate owned

 

 

(88

)

 

 

355

 

 

 

326

 

 

 

(48

)

Merger expenses

 

 

 

 

 

757

 

 

 

915

 

 

 

6,524

 

Other

 

 

2,231

 

 

 

1,760

 

 

 

6,099

 

 

 

4,945

 

Total non-interest expense

 

 

24,223

 

 

 

23,647

 

 

 

74,789

 

 

 

69,249

 

Income before income taxes

 

 

13,196

 

 

 

13,250

 

 

 

19,712

 

 

 

33,278

 

Provision for income taxes

 

 

2,790

 

 

 

2,928

 

 

 

4,147

 

 

 

7,378

 

Net income and net income allocable to common stockholders

 

$

10,406

 

 

$

10,322

 

 

$

15,565

 

 

$

25,900

 

Basic earnings per share

 

$

0.67

 

 

$

0.65

 

 

$

0.99

 

 

$

1.70

 

Diluted earnings per share

 

$

0.66

 

 

$

0.64

 

 

$

0.98

 

 

$

1.66

 

See accompanying condensed notes to interim consolidated financial statements.

6


EQUITY BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

For the Three and Nine Months ended September 30, 2019 and 2018

(Dollar amounts in thousands)

 

 

 

(Unaudited)

Three Months Ended

September 30,

 

 

(Unaudited)

Nine Months Ended

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income

 

$

10,406

 

 

$

10,322

 

 

$

15,565

 

 

$

25,900

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period on

   available-for-sale securities

 

 

952

 

 

 

(1,565

)

 

 

5,240

 

 

 

(5,701

)

Amortization of unrealized losses on held-to-maturity securities

 

 

209

 

 

 

114

 

 

 

714

 

 

 

348

 

Total other comprehensive income (loss)

 

 

1,161

 

 

 

(1,451

)

 

 

5,954

 

 

 

(5,353

)

Tax effect

 

 

(293

)

 

 

368

 

 

 

(1,510

)

 

 

1,357

 

Other comprehensive income (loss), net of tax

 

 

868

 

 

 

(1,083

)

 

 

4,444

 

 

 

(3,996

)

Comprehensive income

 

$

11,274

 

 

$

9,239

 

 

$

20,009

 

 

$

21,904

 

See accompanying condensed notes to interim consolidated financial statements.

 

 

7


EQUITY BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three Months ended September 30, 2019 and 2018

(Unaudited)

(Dollar amounts in thousands, except share data)

 

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

Accumulated

Other

 

 

Employee

 

 

 

 

 

 

Total

 

 

 

Shares

Outstanding

 

 

Amount

 

 

Paid-In

Capital

 

 

Retained

Earnings

 

 

Comprehensive

Income (Loss)

 

 

Stock

Loans

 

 

Treasury

Stock

 

 

Stockholders’

Equity

 

Balance at July 1, 2018

 

 

15,780,777

 

 

$

173

 

 

$

377,800

 

 

$

81,079

 

 

$

(5,994

)

 

$

(121

)

 

$

(19,655

)

 

$

433,282

 

Net income

 

 

 

 

 

 

 

 

 

 

 

10,322

 

 

 

 

 

 

 

 

 

 

 

 

10,322

 

Other comprehensive loss,

   net of tax effects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,083

)

 

 

 

 

 

 

 

 

(1,083

)

Stock based compensation

 

 

 

 

 

 

 

 

611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

611

 

Common stock issued upon

   exercise of stock options

 

 

5,150

 

 

 

 

 

 

105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

105

 

Common stock issued under

   stock-based incentive plan

 

 

6,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2018

 

 

15,792,695

 

 

$

173

 

 

$

378,516

 

 

$

91,401

 

 

$

(7,077

)

 

$

(121

)

 

$

(19,655

)

 

$

443,237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at July 1, 2019

 

 

15,563,873

 

 

$

173

 

 

$

381,133

 

 

$

105,337

 

 

$

(1,291

)

 

$

(83

)

 

$

(26,863

)

 

$

458,406

 

Net income

 

 

 

 

 

 

 

 

 

 

 

10,406

 

 

 

 

 

 

 

 

 

 

 

 

10,406

 

Other comprehensive income,

   net of tax effects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

868

 

 

 

 

 

 

 

 

 

868

 

Stock based compensation

 

 

 

 

 

 

 

 

617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

617

 

Common stock issued upon

   exercise of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued under

   stock-based incentive plan

 

 

450

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Common stock issued under

   employee stock purchase plan

 

 

19,221

 

 

 

 

 

 

405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

405

 

Treasury stock purchases

 

 

(143,210

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,659

)

 

 

(3,659

)

Repayment on employee stock loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

6

 

Balance at September 30, 2019

 

 

15,440,334

 

 

$

174

 

 

$

382,155

 

 

$

115,743

 

 

$

(423

)

 

$

(77

)

 

$

(30,522

)

 

$

467,050

 

See accompanying condensed notes to interim consolidated financial statements.

8


EQUITY BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Nine Months ended September 30, 2019 and 2018

(Unaudited)

(Dollar amounts in thousands, except share data)

 

 

Common Stock

 

 

Additional

 

 

 

 

 

 

Accumulated

Other

 

 

Employee

 

 

 

 

 

 

Total

 

 

 

Shares

Outstanding

 

 

Amount

 

 

Paid-In

Capital

 

 

Retained

Earnings

 

 

Comprehensive

Income (loss)

 

 

Stock

Loans

 

 

Treasury

Stock

 

 

Stockholders’

Equity

 

Balance at January 1, 2018

 

 

14,605,607

 

 

$

161

 

 

$

331,339

 

 

$

65,512

 

 

$

(3,092

)

 

$

(121

)

 

$

(19,655

)

 

$

374,144

 

Net income

 

 

 

 

 

 

 

 

 

 

 

25,900

 

 

 

 

 

 

 

 

 

 

 

 

25,900

 

Other comprehensive loss,

   net of tax effects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,996

)

 

 

 

 

 

 

 

 

(3,996

)

Stock based compensation

 

 

1,375

 

 

 

 

 

 

1,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,950

 

Common stock issued upon

   exercise of stock options

 

 

6,400

 

 

 

 

 

 

123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

123

 

Common stock issued under

   stock-based incentive plan

 

 

14,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock in

  connection with the acquisition

  of Kansas Bank Corporation,

  net of issuance expenses of $207

 

 

820,849

 

 

 

8

 

 

 

31,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31,896

 

Issuance of common stock in

  connection with the acquisition

  of Adams Dairy Bancshares, Inc.,

  net of issuance expenses of $236

 

 

344,063

 

 

 

4

 

 

 

13,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,220

 

Adoption of ASU 2016-01 reclassifying

   AFS equity securities with readily

   determined fair value

 

 

 

 

 

 

 

 

 

 

 

(11

)

 

 

11

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2018

 

 

15,792,695

 

 

$

173

 

 

$

378,516

 

 

$

91,401

 

 

$

(7,077

)

 

$

(121

)

 

$

(19,655

)